Tuesday, May 24, 2011

UTAH LEGALIZES GOLD, SILVER AS CURRENCY, MORE STATES TO FOLLOW?

Utah has now made official the use of gold and silver coins as legal tender.

This marks the first time since 1971 that any government entity in the United States has legalized the use of gold and silver as currency.

The law, signed by Governor Gary Herbert, does not require citizens to pay or accept payment in gold or silver, but rather offers an alternative to the fiat-based Federal Reserve note.

The Utah law will also exempt the sale of gold and silver coins from state capital gains taxes, according to the Associated Press.

The idea was developed by Republican state Representative Brad Galvez, who sponsored the bill primarily as a protest against the reckless monetary policies of the Federal Reserve. Rep. Galvez stated that the American people are losing faith in the dollar and a sound monetary alternative is necessary.

“We’re too far down the road to go back to the gold standard,” Galvez contended. “This will move us toward an alternative currency.”

Larry Hilton, a Utah attorney who assisted in the drafting of Utah’s law, asserted that “We view this as a dollar-friendly measure. It will strengthen the dollar by refocusing policy matters in Washington on what led to the phrase, ‘the dollar is as good as gold.’”

Ralph Danker, project director for economics at American Principles in Action in Washington, D.C., which also helped draft Utah’s legislation, stated that ”Making gold and silver coins legal tender sends a strong signal to Congress and the Federal Reserve that their monetary policy is failing. The dollar should be backed by gold and silver, so we have hard money.”

The AP also noted that “Earlier this month, Minnesota took a step closer to joining Utah in making gold and silver legal tender. A Republican lawmaker there introduced a bill that sets up a special committee to explore the option. North Carolina, Idaho and at least nine other states also have similar bills drafted.”